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Debt | 9 Months Ended
--- | ---
Sep. 30, 2024
Debt Disclosure [Abstract] |
Debt | DEBT Debt is composed of the following obligations.
($ in millions) | September 30, 2024 | December 31, 2023
Short-term debt: |  |
Local overdraft facilities | $ | 22.5 |  | 13.4 |
Other short-term borrowings | 77.1 |  | 134.5 |
Commercial paper, net of debt issuance costs of $2.0 and $— | 798.0 |  | — |
Total short-term debt, net of debt issuance costs | $ | 897.6 |  | 147.9 |
Credit facility, net of debt issuance costs of $12.2 and $14.4 | 332.8 |  | 610.6 |
Long-term senior notes, 1.96%, face amount of €175.0, due June 2027, net of debt issuance costs of $0.3 and $0.4 | 194.9 |  | 193.3 |
Long-term senior notes, 6.875%, face amount of $400.0, due December 2028, net of debt issuance costs of $6.0 and $7.1 | 394.0 |  | 392.9 |
Long-term senior notes, 2.21%, face amount of €175.0, due June 2029, net of debt issuance costs of $0.5 and $0.6 | 194.8 |  | 193.1 |
Total debt, net of debt issuance costs | $ | 2,014.1 |  | 1,537.8 |
Commercial Paper Program On June 27, 2024, we established a commercial paper program (the “Program”) in which we may issue up to $2.5 billion of short-term, unsecured and unsubordinated commercial paper notes at any time, under the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended. Amounts available under the Program may be borrowed, repaid and re-borrowed from time to time. Payment of the Program notes will be fully and unconditionally guaranteed on an unsecured and unsubordinated basis. We intend to use net proceeds of the Program for general corporate purposes, including the repayment of outstanding borrowings under the Facility. Notes issued under the Program will be sold under customary market terms in the U.S. commercial paper market at par less a discount representing an interest factor or, if interest bearing, at par. The maturities of the Program notes may vary but may not exceed 397 days from the date of issuance. The Program notes and guarantee of payment thereof will rank pari passu with all other unsecured and unsubordinated indebtedness. Credit Facilities We have a $3.3 billion unsecured revolving credit facility (the "Facility") that matures on November 3, 2028. Pricing on the Facility ranges from Adjusted Term Secured Overnight Financing Rate ("SOFR") plus 0.875% to 1.35%, with pricing including facility fees, as of September 30, 2024 at Adjusted Term SOFR plus 0.98%. In addition to outstanding borrowings under the Facility presented in the above table, we had outstanding letters of credit under the Facility of $0.4 million as of both September 30, 2024 and December 31, 2023. We will continue to use the Facility for, but not limited to, business acquisitions, working capital needs (including payment of accrued incentive compensation), co-investment activities, share repurchases and capital expenditures. In addition, we have an uncommitted credit agreement (the "Uncommitted Facility"), which allows for discretionary short-term liquidity of up to $400.0 million. Interest and fees are set at the time of utilization and calculated on a 360-day basis. Between quarter-end dates, we intend to use the proceeds to reduce indebtedness under the Facility at a lower interest rate. As such, the Uncommitted Facility had no outstanding balance as of both September 30, 2024 and December 31, 2023. The following table provides additional information on our Facility, Uncommitted Facility and the Program, collectively.
| Three Months Ended September 30, | Nine Months Ended September 30,
($ in millions) | 2024 | 2023 | 2024 | 2023
Average outstanding borrowings | $ | 1,575.7 |  | 2,011.9 |  | $ | 1,446.6 |  | 2,017.0 |
Average effective interest rate | 5.9 | % | 6.1 | % | 6.1 | % | 5.8 | %
Short-Term and Long-Term Debt In addition to our credit facilities, we have the capacity to borrow up to an additional $55.5 million under local overdraft facilities. Amounts outstanding are presented in the debt table above. As of September 30, 2024, our issuer and senior unsecured ratings are investment grade: Baa1 from Moody’s Investors Service, Inc. and BBB+ from Standard & Poor’s Ratings Services. Covenants Our Facility and senior notes are subject to customary financial and other covenants, including cash interest coverage ratios and leverage ratios, as well as event of default conditions. We remained in compliance with all covenants as of September 30, 2024. Warehouse Facilities
| September 30, 2024 |  | December 31, 2023
($ in millions) | Outstanding Balance | Maximum Capacity |  | Outstanding Balance | Maximum Capacity
Warehouse facilities: |  |  |  |  |
SOFR plus 1.40%, expires September 15, 2025(1) | $ | 566.8 |  | 700.0 |  |  | 159.0 | 700.0 |
SOFR plus 1.30%, expires September 13, 2025(1) | 1,152.6 |  | 1,700.0 |  |  | 405.1 |  | 1,200.0 |
SOFR plus 1.40%, expires October 24, 2024(2) | 195.8 |  | 400.0 |  |  | 62.3 |  | 400.0 |
Fannie Mae ASAP(3) program, SOFR plus 1.25% | 138.5 |  | n/a |  | 37.3 |  | n/a
Gross warehouse facilities | 2,053.7 |  | 2,800.0 |  |  | 663.7 |  | 2,300.0 |
Debt issuance costs | (0.6) |  | n/a |  | (1.0) |  | n/a
Total warehouse facilities | $ | 2,053.1 |  | 2,800.0 |  |  | 662.7 |  | 2,300.0 |
(1) Warehouse facility has been amended since December 31, 2023. Refer to our previously filed Form 10-K for specific terms of the agreement as of the comparative period. (2) In October 2024, we extended the term of the Warehouse facility to October 23, 2025. (3) As Soon As Pooled ("ASAP") funding program We have lines of credit established for the sole purpose of funding our Warehouse receivables. These lines of credit exist with financial institutions and are secured by the related Warehouse receivables. Pursuant to these facilities, we are required to comply with certain financial covenants regarding (i) minimum net worth, (ii) minimum servicing-related loans and (iii) minimum adjusted leverage ratios. We remained in compliance with all covenants under our facilities as of September 30, 2024.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 470 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481544/470-10-50-6 Reference 2: 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